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Wrangling the Woes: Duluth Lowers Outlook Amidst Store Struggles

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Duluth Holdings Inc. DLTH unveiled a third-quarter FY23 sales dip of 6.1% year-on-year to $138.21 million, falling short of the consensus of $141.47 million.

Posting an EPS loss of $(0.32), the company missed the analyst consensus of $(0.26) loss.

Store net sales dwindled by 8.8% to $51.2 million due to sluggish foot traffic, although countered by an uptick in average transaction value during the quarter.

Gross margin dwindled to 50.2% from 52.3%, with gross profit shrinking to $69.4 million from $76.9 million a year ago.

The descent in gross profit margin rate stemmed from a reduced mix of full-price sales amidst the sustained promotional retail environment.

Closing the quarter, the company held a cash balance of $8.2 million.

Outlook: Duluth Holdings is anticipating FY23 net sales of $640 million-$655 million, diverging from the $644.19 million estimate (previous projection: $645 million-$660 million).

The company is eyeing an EPS range of $(0.25)-$(0.15), veering off from the $(0.11) estimate (previous projection: $(0.15)-$(0.08)).

Price Action: DLTH shares are trading lower by 3.79% at $4.95 on the last check Thursday.


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